The CBI has registered a case over an alleged USD 10 million India Exim Bank loan fraud. Investigators allege that project funds were siphoned off after machinery was never supplied.The India Exim Bank alleged that it was cheated and suffered a loss of USD 10 million. (Photo- Representational) The Central Bureau of Investigation has registered a case over an alleged USD 10 million fraud involving India Exim Bank, a UK-based company and its former directors and associates, officials told news agency Press Trust of India.The case was filed following a complaint by G Selva Kumar, assistant general manager at India Exim Bank.

The bank alleged that it was cheated and suffered a loss of USD 10 million, around Rs 63 crore, which was outstanding when the loan account was classified as a non-performing asset in September 2014.The First Information Report named Hanjer Biotech (Erith) Ltd, a UK-based company that has since been dissolved, its former directors and guarantors, Navi Infrastructure Engineering Pvt Ltd, Hume Synthesis Pvt Ltd and unidentified public servants as accused.According to the allegations, Hanjer Biotech entered into an agreement with Navi Infrastructure for the supply of machinery for a recycling project in the UK. “The borrower company requested the bank for a loan for the said project. The cost of the project submitted by the borrower company was USD 15.90 million, which was proposed to be funded by promoter(s)' contribution of USD 5.90 million and the balance by way of loan from Exim Bank,” the complaint, which is now part of the FIR, alleged.The bank's executive committee in Mumbai approved a USD 10 million term loan in 2012, according to the FIR.

The machinery was allegedly never supplied, and the advances received for its purchase were diverted as loans to related parties, including Hume Synthesis. The entire USD 10 million loan was allegedly siphoned off, Press Trust of India reported, citing the FIR.

The account was declared a non-performing asset in 2014 and was later classified as fraud under Reserve Bank of India guidelines.- Ends